The American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11, 2021, providing $350 billion in additional funding for state and local governments. The funding provided under ARPA is substantial and could be transformational for local governments in their response to and recovery from the COVID-19 public health emergency.
ARPA funds will be issued in two tranches, of which the City of Sugar Land has already received $5,557,979, and the balance is expected in May of 2022 for a total of $11,115,958. As a recipient of this funding, the City has substantial discretion to use the award funds in the way that best suits the needs of our community, as long as such use fits into one of the following four categories:
- To respond to the COVID-19 public health emergency or its negative economic impacts;
- To support the COVID-19 public health and economic response by addressing COVID-19 and its impact on public health as well as addressing economic harms to households, small businesses, nonprofits, impacted industries, and the public sector;
- To respond to workers performing essential work during the COVID-19 public health emergency;
- To replace lost public sector revenue and for the provision of government services; or
- To make necessary investments in water, sewer, or broadband infrastructure.
On January 6, 2022, Treasury released its final rule - which took effect April 1, 2022, and details recipients’ compliance responsibilities and provides additional information on eligible and restricted uses of award funds and reporting requirements. Recipients must ensure they maintain proper documentation supporting determinations of costs and applicable compliance requirements, and how they have been satisfied as part of their award management, and internal controls.
In the fall of 2021, staff concluded that assistance in managing the award funding and subsequent projects would be beneficial, and a solicitation for professional services was publicized. Of the 9 firms responding, staff interviewed the top 2 rated firms. Each firm gave a presentation as to how they will assist the City with project selection, management, compliance, and reporting. Grantworks, Inc. was unanimous among staff as the right experience and fit for the City.
Grantworks, Inc. will be providing technical advisory services related to recovery from COVID-19; provide programmatic and policy advice on federal disaster relief programs; and develop and implement strategies designated to maximize award funding, in addition to compliance monitoring and reporting.
The fee schedule is based on contract milestones and deliverables to be expected, which will take place over multiple years and include the creation of the projects and assignment of preliminary budgets; preparation of appropriate project documentation regarding eligibility and expenses; the expenditure of funds; and final filing of all necessary reports and project close-outs.
Staff respectfully recommends the City enter into this contract with Grantworks, Inc. for professional consulting services in the amount of $455,000 to assist with the management of the ARPA Funding awarded to the city – as well as approve a budget amendment in the amount of $455,000 from ARPA funds to appropriate the funding necessary for this contract.